Are Canadians getting enough value for their tax dollars? The emphatic answer is ‘no‘
Last week, The Fraser Institute released its 2024 edition of its publication Taxes versus the Necessities of Life: The Canadian Consumer Tax Index, which tracks the total tax bill of the average Canadian family from 1961 to 2023. It’s a fascinating read to see how much the average Canadian pays in taxes — not just income tax, but other taxes like property taxes, GST, carbon taxes and indirect taxes, as well.
Yes, some loud voices on social media — especially some left-of-centre economists and partisans — scream loudly that this report is flawed. Mainly, from what I can tell, they don’t believe that indirect taxes — such as corporate taxes — should be included in the analysis (and also that they simply don’t like the Institute for continuously calling out fiscal irresponsibility) but I actually think it is well done, because any taxes, even those borne indirectly, add to a person’s cost of living. At a minimum, it is good food for thought.
Some highlights from the report:
Absorb those statistics for even 30 seconds. The fact that the average Canadian family now pays — and has for a while — more in taxes than the necessities of life is mind-boggling. When I speak on this subject at lectures or conferences, I often test the audience to see if they know what the average Canadian family pays in taxes compared to the basic necessities of life. The guesses I get are usually way off. When the actual right answer is given, there are often surprised looks and some audible gasps. However, when the logic is explained in more detail, the audience mostly understands.
The simple fact is that the average Canadian family has less disposable income in their pockets than ever and increased overall taxes is a big reason for this. This
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